Mr. Speaker, the battle lines continue to grow each day concerning who is right and who is wrong in analysing the Canadian economy. On one side people such as Lloyd Atkinson, former head economist at the Bank of Montreal, are saying that unless the Bank of Canada eases up on interest rates, our economy will be heading toward a recession within a year. On the other side is Bank of Canada Governor Gordon Thiessen who feared a move to decrease the interest rate because it would undermine his bank's inflation fighting credentials.
Still other noted economists strongly believe that the Bank of Canada will have no choice but to either lower interest rates or let the dollar weaken to keep the economy afloat. Yesterday's unexpected announcement by the Bank of Canada of a reduction rate by 19 basis points to 7.19 per cent was a welcome relief for Canadians. Our standard of living has steadily declined over the past four years. We need a made in Canada interest rate policy.